Nov 11 in China means Single’s day because it is the only day in a year that have four 1s(1111). Now this day is more and more popular among all the generations. Tianmao which is the biggest online shopping website caught the opportunity, applied innovation and then introduced double 11 sales activity in 2011.
This activity helped Tianmao reached the summit of e-commerce. Compared to the data in 2012, the sales almost tripled which arrived $3.1 billion in 2013. This figure is really amazing as it was the figure for only one day.
My analysis shows the success of Tianmao has three main factors. Firstly, it makes large invisible investment (advertisement). You can see Tianmao’s Double 11 advertisements everywhere on the Internet a month before Nov 11. Secondly, it builds great business ethics successfully. For example, consumers have the right to return goods if they are not satisfied with it; before buying a good, they can communicate with the shopkeeper online to know more about the good’s size and so on. Thirdly, it contains a lot of brand names and the managers use their resources appropriately. On Nov 11, all the brand names will have 50% discount and this really stimulates and attracts a large number of consumers. Meanwhile, the IT department of Tianmao also suffers from stress although they have doubled it website capacity.
I believe e-commerce will become mainstream way of shopping for its convenience and high cost performance.
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